2. Photovoltaics as an energy option for rural areas: benefits and over all social and economic context

3. PV systems for supplying electric power to rural households

4. The demand situation of potential shs target groups

5. Criteria for assessing the economic feasibility and financing options for solar home systems

6. An appropriate dissemination strategy for shs and the role of GTZ

7. References

1. Background information and recommendations

Photovoltaics is already considered to be a viable option for
supplying electric power to consumers in remote rural areas and on islands that
are far removed from national power grids - especially private households.

However, the dissemination of photovoltaic systems via market
mechanisms has proved to be a very complex undertaking. In order for it to work,
a wide variety of individual actors at a great many decision-making levels must
interact in just the right way. The roles of the individual actors are described
in this paper.

In addition to this aspect, which has to do primarily with the
design and implementation of energy policy, certain basic prerequisites must be
met by the technology itself. In order to tailor the systems to local needs and
conditions, an intensive dialogue with the target groups is required. Quality
control - including the inspection and certification of locally manufactured
components - is also a must. The inhabitants of remote areas will see the
purchase of the systems as a way of raising their standard of living and gaining
access to modern technology. It is imperative to ensure that they are not used
as "Guinea pigs" to test technologies which are not yet technically and
economically viable merely because of their low purchasing power.

Finally, it is essential to bear in mind that market-oriented
dissemination of photovoltaic systems in rural areas also calls for a rethinking
of the financing strategies for such projects. Conventional financing methods
involving the provision of bank loans to a small target group that is relatively
affluent and thus credit-worthy in the eyes of formal-sector financial
institutions are increasingly being supplanted by new approaches which are
tailored to the needs of lower-income segments of the population which have so
far had few if any dealings with
banks.